Trader Dan Nathan does not see bullish case for Bitcoin, top cryptocurrency, in 2022
during Recent Episodes It’s going to take a pivot for bitcoin to start another rally by the US Federal Reserve, says Dan Nathan, principal at CNBC’s “Fast Money,” Risk Reversal Advisors.
Unfortunately for bulls, the trader does not see such a scenario playing out in 2022.
Earlier this week, the Wall Street Journal reported that the Fed was on track to announce another 75-basis point interest rate hike. In his flamboyant Jackson Hole speech given at the end of August, Fed Chairman Jerome Powell made clear that the central bank offensive would not go away vigorously.
The Fed has been hiking interest rates at the fastest pace since the 1980s in order to tame high inflation.
Nathan also noted that the dominance level of bitcoin is at its lowest in a long time, which is unlikely to bode well for the market.
He also says that the top cryptocurrency is trading like an ordinary stock, so bulls will have a hard time crafting a new narrative.
It was a brutal, brutal summer
Bitcoin’s performance this summer was nothing short of disastrous. In June, the cryptocurrency recorded its worst month in more than a decade, falling over 37.3%.
The flagship coin staged a mild recovery in July, adding 17.9%. However, it then erased virtually all of these gains.
September, a historically bearish month, also got off to a tremendous start. On Wednesday, the price of bitcoin fell to $18,540, nearing a 2022 low.
